Dallas, Texas 10/23/2013 (Financialstrend) – On October 18, it was announced that the $1.76 billion market capitalized oil equipment and service provider McDermott International (NYSE:MDR) has a new Chief Executive Officer at the helm of affairs. David Dickson has been tipped to take over from the current incumbent Stephen Johnson, once Johnson retires on December 31. Dickson was heading the firm “Technip” between 2008 and now as its President. The equipment manufacturer would be hoping to leverage from the vast 23 years of experience that he has accrued in the off shore oil extraction and refinery construction projects. Dickson is expected to temporarily don the role of COO from November 1, till December 30 when the CEO post will become vacant after Johnson’s departure.
David Dickson will have his plates full on taking control of operations fully. He will have to start by shoring up investor confidence in the stock. The stock has ceded market value in the last few months. In the past 90 days it has lost close to 15% of its market value. The stock is trading in the red by 21% when compared against its 200 day moving average.
Next challenge to face him would be to convince the analyst houses and the rating firms that the company has a long term road map in place to improve the prospects of the firm. In context is October 15 downgrading of the company by rating firm HSBC securities.
Finally he will have to device a strategy to overcome any roadblocks that are posed by legal challenge started by disgruntled investors in the form of a class action suit. These investors have filed a case in “United States District Court for the Southern District of Texas” alleging that the board and the management wilfully and with criminal intent failed to disclose the full extent of weakness the firm has experienced in terms of bidding for projects and follow it up with timely execution